2019 Report details for project: Defence Estate Optimisation

Project name: Defence Estate Optimisation - there are 2 reports for this project: 2018, 2019
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Organisation: MOD (D17) - see all reports for this organisation
Report year: 2019 (data is from Sept 2018)
Category: Military - see all reports for this category
Description: The main aims of the programme are to: • Create a smaller, better estate delivering required Military Capability • Contribute to the defence target of a 30% reduction in the MOD Built Estate by 2040 • Deliver £4.0bn of capital receipts by 2040. This will be achieved by disposing of 91 sites, this will in many cases involve working with TLBs and FLCs to optimise estate usage, move capabilities and re-provision infrastructure where necessary. • Contribute towards Public sector land release and the MOD target to release sufficient land to deliver 55,000 potential housing units in this Parliament. • Contribution to MOD running costs savings totalling over £4Bn by 2040.
DCA (RAG): Amber/Red
DCA text: The DEO Programme continues to report an Amber/Red IPA RAG status, however significant work is underway to ensure the successful delivery of the programme which has included; • A full programme reprioritisation to address the programme affordability issues, moving to a disposal lead structure, included as part of the February update to parliament • Enhancing the DEO governance model to further empower Senior Responsible Officer’s
Start date: 2016-09-30
End date: 2041-03-31
Schedule text: Following MOD approval, delivery is on schedule to Baseline Version 8, any future changes are subject to robust change control.
Baseline: £201.05m
Forecast: £85.35m
Variance: -58.00%
Variance text: The variance has been caused by a change in scope, cost estimates and delivery plan. The change has occurred due to a whole programme review (referred to reprioritisation) and a move towards a programme maturity point. It is worth noting that although Q2 succeeds FY17/18 the baseline forecast was frozen, prior to Q2, whilst the programme underwent the change process.
Whole Life Cost: £1,166.87m
WLCost text: Since Q2, the Programme has undertaken a reprioritisation exercise, in order to improve affordability and deliverability, and build on local authority engagement on future use of planned disposal sites. This has led to the approach of delivery in waves of activity. With the first wave being affordable, programmed and underway.
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Sourcefile: None

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